alibaba.com sourcing intelligence series - chongqing, china (full version)

Market Intelligence Report

Chongqing

Buyer Service & Development Team

Content Table

•Regional Overview

•Industry Presence

•Industry SWOT Analysis

•Competitive Advantages

•Conclusion

Sourcing Hub Service

Meeting with Suppliers

Package A: Meeting with suppliers in local office

Package B: Meeting with suppliers & factory visit

Market Intelligence

Acquire sourcing tips from our expert team on:

- Market information;-Sourcing tips;

Pre-trip Arrangement

Leave all transportation arrangements to us:

- hotel pick up;- Alibaba.com local office;

More Information: http://www.alibaba.com/sourcinghub

please apply here

Meet pre-screened suppliers in one day in one of the 17 Asian industrial Zones (Sourcing Hubs)

17 Sourcing Hubs

please apply here

Contact Us

Tommy Jiang Key Account ManagerBuyer Service & Development, Alibaba.com Phone:  86-571 -8502-2088 ext. 39128Mobile: 86-151-6829-8894Fax: 86-571-8981-5517Email: tommy.jiangj@alibaba-inc.comMSN: simplykid2020@hotmail.comWebsite: http://buyer.alibaba.com/

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Regional Overview

Regional Advantageous Products:

• Auto Parts

• Tools

• Textile & Apparel

• Machinery

Industry Presence

Auto & Motorcycle Parts

Textile & Apparel

Machinery

Tools

SWOT Analysis Illustration

Industry SWOT Analysis

- Good at

products storage

& logistics

- Directly report to

central

government

- Low cost on

resources (land,

water etc)

- Strong industry

background

- Cheap & skilled

labor force

- Companies are relatively poor in product development strategy, branding & service

- Focus on traditional exporting products, lack of new growth engine

- Due to the barriers between different industries, the efficiency of business、 logistics、 capital and information is low

- Transmission of textile & apparel industry from coastal regions will boost inland economy

- State government favorable policies

- New entrance to European countries (Eurasia Land Bridge)

- Established inland tariff-free zone

- Free trade agreement to Eastern Union

- Strong competition from neighboring regions such as Chengdu & Lanzhou

- Low carbon economy development model indicates high pressure on logistics

- Unbalanced distribution of various transportation (air/seaway/landway)

SWOT

Domestic Logistics Network

Logistics Network

Over 85% of Chongqing transportation is carried out by road. During the

integration of railway & waterway logistic systems, Chongqing could

combine the advantages of landway, waterway and railway, strive for

efficiency and cost.

Waterway Railway

Source：Chongqing government

Eurasia Land Bridge

Kunming

Railway to Europe

Shanghai

Europe

Eastern Union

Save at least 12 days on

sea!

Direct to EU FTZ

Direct to Japan/Korea

/United States

Source：Chongqing foreign trade committee

ChongQin

g

Beijing

Hongkong

Financial Services

Financial Service platform

Chongqing is one of the most

important financial platforms in

Western China. It carries various

financial products & services,

famous bankers such

HSBC、 Standard Chartered and

BEA also have business in there. In

10 years, Chongqing will become a

financial centre in Yangtze River

upper stream regions.

Source：Chongqing foreign trade committee

Raw Material Price (2011 updated )

Source：Alibaba.com

Fine Staple Cotton Price (Chongqing)

US $3353.85/t

Cotton Yarn Price (Shaoxing)

US $3384.62/t

Main raw materials in

Textile & Apparel production

Raw Material Price (2011 updated )

Source：Alibaba.com

Main raw materials in

Auto Parts production

Aluminum Alloy Price (Shanghai)

US $24230.77/t

Alloy Plate Price (Chongqing)

US $730.77t

Transportation Cost (2011 updated )

Gasoline 90# US$ 1110.77/t Diesel 0#

Source：Alibaba.com

Current Price of

Gasoline & Diesel

Labor Cost

Labor Cost Analysis

Chongqing has its new

standard for minimum

income, 190RMB pay rise

still make Chongqing’s labor

cost competitive compare to

Eastern coastal regions.

Source：Chongqing government

Main Regions in Chongqing Minimum Monthly Payment Hourly Payment

First-Class cities such asYuzhong district, Yubeidistrict,J iangbei district

8.7 RMB/Hour

Second-Class cities such asWanzhou district,Fulin

district,Yongchuan district7.5 RMB/Hour

Third-Class cities such asLiangping county,Chengkou

county,Fengdu county7.1 RMB/Hour

Effective at 1 Feb 2011

Bill Cost (water、 electricity、gas)

Water, electricity & nature

gas

Chongqing has abundant natural

resources such as water and gas,

the cost on those valuable

resources are relatively lower than

those in developed regions (Beijing

/ Tianjin /Guangzhou). Moreover,

the supply is much stable in terms

of less demanding.Source：Chongqing foreign trade committee

Land Cost

Land Cost

Refer to current government policies,

land transfer fees in Chongqing is

lower than coastal regions such as

Shanghai and Guangzhou. While

compare to neighboring cities like

Chengdu and Xi’an, Chongqing is still

competitive.

Source：Chongqing foreign trade committee

Conclusion

Why oversea buyers do Sourcing in Chongqing?• Healthy trade status (recovered from financial crisis)

• Critical regional position (strategic area in western China)

• Fantastic logistic networks (convenient seaway/airway/railway)

• Integrated & complete service platform (finance/tariff/policy)

• Lower sourcing costs ( labor/resource/tax )

Chongqing advantageous industries & products:• Auto & Motorcycle Parts

• Tools

• Machinery

• Textile & Apparel

Sourcing Hub Service

Meeting with Suppliers

Package A: Meeting with suppliers in local office

Package B: Meeting with suppliers & factory visit

Market Intelligence

Acquire sourcing tips from our expert team on:

- Market information;-Sourcing tips;

Pre-trip Arrangement

Leave all transportation arrangements to us:

- hotel pick up;- Alibaba.com local office;

More Information: http://www.alibaba.com/sourcinghub

please apply here

Meet pre-screened suppliers in one day in one of the 17 Asian industrial Zones (Sourcing Hubs)

17 Sourcing Hubs

please apply here

Contact Us

Tommy Jiang Key Account ManagerBuyer Service & Development, Alibaba.com Phone:  86-571 -8502-2088 ext. 39128Mobile: 86-151-6829-8894Fax: 86-571-8981-5517Email: tommy.jiangj@alibaba-inc.comMSN: simplykid2020@hotmail.comWebsite: http://buyer.alibaba.com/

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